According to a report from The Charlotte Observer [1], Wells Fargo is laying off another 700 mortgage workers across the country. The bank announced Thursday the layoffs would affect mortgage processors and underwriters the hardest.
Charlotte, North Carolina serves as the East Coast regional headquarters for the San Francisco Bank, who previously cut workers in August, September, and October.
Total job losses this year have reached over 5,800 as rising interest rates have dramatically slowed the number of home refinancings.
Historically low interest rates pushed consumers towards refinancing, and as interest rates began to rise, refinancings cooled in the process. The extra staff once needed to process the influx of new refinancings are being let go.
The Charlotte Observer notes, "Wells Fargo's mortgage banking income fell nearly 50 percent in the fourth quarter from the same period the year before, according to its most recent earnings report [2]."
Wells Fargo has considered lowering its credit requirements on home loans [3] back to the subprime market to increase earnings.
Josh Dunn, Wells Fargo spokesman, said in a statement that the cuts were made to "better align with the market and increase the efficiency of our organization."
Wells Fargo isn't the only bank cutting staff—Bank of America recently cut 450 jobs from the bank’s West Coast offices [4] and 280 workers from its St. Charles, Missouri office [5].